Wednesday, November 26, 2014

Should You Buy a New or Used Boat?

If you are in the process of buying a boat, it’s always important to look at all the available options. The amount of money you want to spend on the boat will certainly affect your decision. A used boat will certainly cost less but there are other factors to be considered. Buying a brand new boat doesn’t necessarily mean that you made a good investment. So here are 5 questions you need to ask yourself before making a decision.
1.     Do you have financing?
If you intend to buy the boat in cash then you can buy either a used or new boat. However, for those people who are looking for financing in order to buy a boat, it’s going to be harder to get if you plan on buying a used one. Most financiers will not trust that the boat will be a good investment if it has been used before. However, you can always provide evidence that the boat is in proper state in order to secure financing. Hire your own mechanic to assess the boat before you make a purchase. Make sure whatever you are buying is worth the cost.
2.     What is the boat’s repair history?
You don’t want to buy a boat that has not been properly cared for. You’ll only spend a lot of time and money on repairs even if you bought it at a low price. Find out from the seller if the boat has any structural defects and mechanical issues. Some of these issues are quite hard to detect so that’s why you need to buy a used boat from someone you can trust. Talk to the owner’s mechanic so that you can understand the kind of repairs that have been done in the past. If the problems will keep on emerging, we would suggest you look for another boat.
3.     Have you considered the level of depreciation?
Every asset depreciates in value with time so it’s always worth considering this before buying a new or used boat. Know how much the item has depreciated and if the amount that it is going for is reasonable. Get the numbers right by comparing other used boats sold online. If the amount is too low then think twice. There are cases where people sell their used boats because they are not in good working condition. Don’t be ready to pay for a used boat because it’s offered at a low price. Ask a professional to inspect it and make sure it’s worth every dime.
4.     Will they offer after sales service?

Once you buy a new boat, there are high chances that any problems which crop up are going to be fixed by the seller. However, most individual owners who sell used boats do not offer any after sales services. This can be very risky if you are planning on making an important investment like this. You must be very confident that the used boat is in perfect condition especially if it doesn’t come with a warranty.

Posted By: Stowaway Marine

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